Trustee Update and current funding position of the Fund at March 2023

The Trustees of the Fund met with TfL on 28 March 2023 to discuss the Pensions Review, in particular the letter to Government of 17 March 2023.  TfL confirmed that no changes to the TfL Pension Fund are currently being proposed and that "do nothing" remains an option.
 
The Trustees monitor the strength of the employer's covenant and are pleased to report that their assessment of the employer's covenant has strengthened since the 2021 actuarial valuation following the latest update provided by the Fund covenant advisor.
 
At the last actuarial valuation of the Fund as at 31 March 2021, the Public Sector section of the Fund was well funded with a surplus of £179m, meaning the Fund's assets were more than sufficient to provide for members' accrued pensions. As agreed between TfL (as principal employer) and the Trustees following the 2021 Actuarial Valuation, an annual assessment is undertaken at 31 March each year to determine the Fund's financial position which in turn determines whether any additional contributions are required to be paid to the Fund by TfL.
 
The Trustees are pleased to report that, due to the strength of the Fund and its current anticipated funding level, the 2023 assessment is expected to show that the Fund remains in a surplus position.  The Scheme Actuary subsequently confirmed that at the 31 March 2023 assessment the Fund was in surplus and no additional contribution will be required from TfL.  TfL acknowledges this funding position. The Fund's next actuarial valuation is due to take place as at 31 March 2024.